Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Bristol-Myers Squibb Co., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data reveals significant fluctuations in profitability measures over the analyzed periods. A detailed examination of the key earnings metrics provides insights into the company’s financial performance trends.
- Net Earnings (Loss) Attributable to BMS
- The net earnings exhibit a highly volatile pattern across the five years. The year ending December 31, 2020, shows a substantial loss of approximately $9 billion. This sharply reverses in 2021 and 2022, with positive earnings of roughly $7 billion and $6.3 billion, respectively. The upward trend continues into 2023 with earnings increasing to approximately $8 billion. However, the year ending December 31, 2024, again shows a large loss nearing $9 billion, indicating a dramatic downturn after three years of profitability.
- Earnings Before Tax (EBT)
- EBT follows a similar pattern to net earnings. It starts with a loss of about $6.9 billion in 2020, then transitions into profits around $8.1 billion in 2021, just over $7.7 billion in 2022, and approximately $8.4 billion in 2023. The last year shows a notable return to a negative figure near $8.4 billion, reflecting a sharp decline after sustained positive earnings.
- Earnings Before Interest and Tax (EBIT)
- EBIT data highlight a comparable trend with losses of $5.5 billion in 2020. Following this, the company reports strong positive EBIT values, peaking at nearly $9.6 billion in 2023. Notably, while EBIT remains positive and relatively stable from 2021 through 2023, it decreases substantially to a loss of about $6.4 billion in 2024, indicating decreased operational profitability.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA figures display a different scale and trend compared to other earnings measures. Starting at $4.9 billion in 2020, EBITDA sharply increases to over $20 billion in 2021, maintaining similar levels through 2022 and 2023 (close to $19 billion). In 2024, EBITDA dramatically declines to $3.2 billion, signaling a significant reduction in overall operational cash flow generation especially when excluding non-cash expenses.
Overall, the data illustrates a company facing substantial earnings volatility, with strong recovery phases between losses. The most recent period displays a marked reversal to losses across all profitability indicators, suggesting potential operational challenges or extraordinary charges impacting financial performance. The consistency between EBIT and EBITDA trends from 2021 to 2023 indicates robust underlying operations during those years, but the 2024 decline warrants further investigation into causative factors.
Enterprise Value to EBITDA Ratio, Current
Bristol-Myers Squibb Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 134,329) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,168) |
| Valuation Ratio | |
| EV/EBITDA | 42.40 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AbbVie Inc. | 26.56 |
| Amgen Inc. | 15.61 |
| Danaher Corp. | 21.90 |
| Eli Lilly & Co. | 50.58 |
| Gilead Sciences Inc. | 35.10 |
| Johnson & Johnson | 15.64 |
| Merck & Co. Inc. | 8.82 |
| Pfizer Inc. | 10.40 |
| Regeneron Pharmaceuticals Inc. | 9.93 |
| Thermo Fisher Scientific Inc. | 16.34 |
| Vertex Pharmaceuticals Inc. | 230.37 |
| EV/EBITDA, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 20.65 |
| EV/EBITDA, Industry | |
| Health Care | 18.71 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Bristol-Myers Squibb Co., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 152,789) | 126,048) | 181,761) | 173,993) | 169,334) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,168) | 19,366) | 19,221) | 20,118) | 4,929) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 48.23 | 6.51 | 9.46 | 8.65 | 34.35 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AbbVie Inc. | 26.97 | 20.79 | 13.31 | 13.44 | 21.34 | |
| Amgen Inc. | 15.31 | 14.13 | 12.97 | 13.22 | 12.24 | |
| Danaher Corp. | 22.34 | 26.41 | 18.42 | 21.05 | 26.68 | |
| Eli Lilly & Co. | 55.98 | 85.33 | 37.74 | 29.85 | 23.67 | |
| Gilead Sciences Inc. | 35.86 | 10.41 | 13.89 | 8.57 | 24.90 | |
| Johnson & Johnson | 15.77 | 16.45 | 14.78 | 14.47 | 18.20 | |
| Merck & Co. Inc. | 9.90 | 51.30 | 13.91 | 12.18 | 16.05 | |
| Pfizer Inc. | 10.60 | 22.50 | 6.12 | 8.64 | 15.78 | |
| Regeneron Pharmaceuticals Inc. | 13.55 | 20.16 | 15.27 | 6.68 | 12.70 | |
| Thermo Fisher Scientific Inc. | 19.89 | 21.83 | 20.25 | 20.21 | 18.72 | |
| Vertex Pharmaceuticals Inc. | 231.93 | 21.57 | 14.91 | 18.92 | 14.81 | |
| EV/EBITDA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 22.07 | 22.59 | 13.58 | 13.16 | 18.90 | |
| EV/EBITDA, Industry | ||||||
| Health Care | 20.34 | 19.28 | 13.93 | 14.07 | 17.33 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 152,789 ÷ 3,168 = 48.23
4 Click competitor name to see calculations.
The financial data presents key metrics related to the enterprise value and profitability of the company over a five-year period.
- Enterprise Value (EV)
- The enterprise value exhibited a general increase from 2020 to 2022, rising from $169,334 million to $181,761 million. However, there was a significant decline in 2023 to $126,048 million, followed by a partial recovery to $152,789 million in 2024. This pattern indicates volatility, with a notable dip in 2023 before a rebound.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed a dramatic increase from $4,929 million in 2020 to a peak of $20,118 million in 2021. This level remained relatively steady in 2022 and 2023, with slight decreases to $19,221 million and $19,366 million respectively. However, there was a sharp decline in 2024, with EBITDA falling to $3,168 million, indicating a substantial reduction in earnings capacity.
- EV/EBITDA Ratio
- The EV/EBITDA ratio demonstrated significant fluctuations. It started very high at 34.35 in 2020, then fell markedly to 8.65 in 2021, reflecting the rapid growth in EBITDA relative to EV. It remained relatively stable in 2022 and 2023 at 9.46 and 6.51, suggesting a more balanced valuation compared to earnings. Yet in 2024, this ratio surged to 48.23, driven by the sharp decrease in EBITDA coupled with the partial recovery in EV, indicating a stretched valuation relative to earnings.
Overall, the company experienced substantial volatility over this period. The sharp increase in EBITDA from 2020 to 2021 contributed to a more favorable valuation multiple, but the sudden earnings decline in 2024 adversely affected profitability metrics and distorted valuation ratios. Enterprise value trends suggest underlying market or operational disruptions in 2023 and 2024, warranting further investigation to understand the causes behind these substantial swings in financial performance and valuation.